In recent years, electronic commerce conducted has become increasingly popular with consumers. Consumers are able to identify and purchase a wide variety of goods and services. The ease of accessing and reviewing insurance information online, and the speed of electronic processing of data, has attracted consumers to insurance providers having an online presence.
Initially, insurance providers typically set up electronic sites, such as Internet Web sites, that enabled consumers to locate agents of the insurance providers. Consumers providing address information to an insurance provider's Web site would in return receive information identifying the closest agents of the insurance provider that were qualified for the type of insurance the consumers were seeking.
As time progressed, insurance providers began providing quotation services via the Internet. Insurance providers would calculate an estimated cost of insurance based on brief questionnaires provided to consumers regarding the insurability of an individual or property and the desired insurance. The quoted cost was typically accompanied by an invitation to the consumer to contact the insurance provider or one of its agents offline to pursue the insurance coverage.
Recognizing that consumers were increasingly willing to provide information needed for insurance coverage via the Internet, especially as transmission security improved, insurance providers began providing insurance application processes online in which consumers were given user friendly interfaces that enabled them to provide information required for an insurance application. Value-added software, such as insurance comparison tools, further enabled consumers to make intelligent choices concerning the purchase of insurance. Information received from consumers was then entered into one or more actual insurance application forms that the consumers could print onto paper, sign, and mail to the insurance provider. In this manner, the consumer was relieved of having to manually fill out an insurance application. These online tools also improved the accuracy of insurance applications, as they helped consumers enter appropriate information in the proper application fields.
In all of the foregoing systems and processes, certain deficiencies remain that prevent consumers from completing an insurance application process entirely online, without the need for additional follow-up in terms of submitting an actual insurance application. These deficiencies are particularly evident in the field of processing life insurance applications. For example, the National Association of Insurance Commissioners (NAIC) requires insurance providers to provide a full illustration of an insurance policy to persons applying for universal life insurance. At present, insurance providers use traditional paper methods to obtain a certification indicating whether the required illustration was provided.
Insurance providers may further require confirmation of a customer's identification, especially in circumstances where a simplified life insurance application process is concerned. Traditional methods of verifying a customer's identification require an agent to personally meet with the proposed insured and submit paper documentation to the insurance provider certifying the identity of the proposed insured.
Before issuing a life insurance policy, insurance providers typically review the medical history of the proposed insured to ensure an appropriate balance of the premium charged and the expected risks to be covered. Traditionally, insurance applicants submit paper documentation that authorizes the insurance provider to contact third parties and collect medical history information for the proposed insured. Insurance providers are precluded from collecting medical history information until this authorization is obtained, which may be delayed by several days or weeks until the paper documentation from the applicant is received and processed. This delay affects the timely processing of the insurance application.
In circumstances where types of insurance coverage have been provided through an online process, insurance applicants are frequently left without a clear picture of the insurance policy they acquired. This problem is further exacerbated in circumstances where the proposed insured is given temporary insurance coverage pending the underwriting and issuing of the insurance policy that was purchased. A need exists for better documentation that is personalized for the insured and clarifies both the insurance policy that was purchased and any temporary coverage provided while the policy is being issued.
The present invention is directed to a method and system that addresses the foregoing needs and deficiencies and provides better processing of life insurance applications online.